March 25, 2009

Nike pulls output at 4 Asia plants

Nike Inc plans to halt its production at three shoe factories in China and one in Vietnam.

Source: CNBC, Reuters
~News submitted by upthecreek

IBM Cutting More Jobs, Shifting Work to India

Weeks after slashing nearly 5,000 jobs, IBM is expected to shift the work of a large number of U.S. workers to IBM employees working in India, the latest example of a successful company that is continuing to slash costs and take advantage of cheap Asian labor, WSJ reported.

Source: WSJ, Fox Business News

Update (March, 25, 2009): IBM to cut 5,000 jobs in U.S: According to Reuters: “The job cuts will account for over 4 percent of IBM’s U.S. workforce, which totaled around 115,000 at the end of 2008. The sources, who were not authorized to speak publicly on the issue, said the cuts will mostly be in IBM’s global services business, which includes outsourcing and consulting services.”

BusinessWeek also reports (“IBM Cuts Jobs As It Seeks Stimulus Money“): “..the company would be cutting high-skill positions domestically as it and others jockey for new business from the $787 billion stimulus package Congress enacted in February”

March 17, 2009

Nokia Plans 1,700 Job Cuts as Sales Slow

Nokia said Tuesday that it planned to eliminate 1,700 jobs, roughly 3 percent of its work force, as demand for phones continued to sag.
The company said 700 workers would be laid off in Finland and the rest elsewhere in Europe, Asia and North America. The layoffs are to take place in Nokia’s devices and markets divisions, which produce, market and sell mobile phones, and in a unit responsible for long-term corporate strategy.

Source: NYTimes

February 25, 2009

Lenovo to cut 450 jobs in China

According to Reuters: “Lenovo Group, the world’s fourth-largest maker of personal computers, will eliminate 450 jobs in China, a company official said, as it cuts costs in a bid to return to profitability in 2010.”

February 19, 2009

Asian Joblessness to Balloon

Asia is likely to have 7.2 million more jobless people in 2009 than last year due to fallout from the global economic crisis, the International Labor Organization said.

It forecast the ranks of unemployed workers would likely balloon to 97 million in 2009 in Asia, the world economy’s star performer in recent years but where a third of the population still live on a little more than $1 a day.

“As global demand for workers contracts, the flow of migrant workers from developing Asia will moderate in 2009,” the ILO report said. “For labor-sending countries, this will exacerbate the challenge of mitigating job losses and generating new employment domestically.”

Source: The Wall Street Journal

February 10, 2009

South Korea will lose 200,000 jobs in 2009

South Korea will lose 200,000 jobs this year, South Korean Finance Minister Yoon Jeung Hyun forecast yesterday. That would be the biggest decline since 1998, when 1.3 million positions were lost in the aftermath of the nation’s currency collapse during the Asian financial crisis.

“The economy shrank 5.6 percent in the fourth quarter from the previous three months. Overseas shipments fell a record 32.8 percent in January.
The number of employed people fell by 103,000 in January from a year earlier, the biggest decline in more than five years”, according to statistics report.

Source: Bloomberg

China’s January Exports Fall 17.5%, Most Since 1996

According to Bloomberg: “China’s exports fell by the most in almost 13 years as demand dried up in the U.S. and Europe, worsening the outlook for jobs and industrial production in the world’s third-biggest economy.”

China’s economic slide has already cost the jobs of 20 million migrant workers, adding pressure on the government to boost consumption and expand a 4 trillion yuan ($585 billion) stimulus package. Government researchers have advocated weakening the yuan against the dollar to support exports, a move that could add to trade tensions amid the worst financial crisis since World War II.”

Imports declined 43.1 percent in January from a year earlier, the biggest decline since Bloomberg data began in 1995, on the nation’s waning demand for raw materials for manufacturing and lower commodity prices.”

“China’s industrial output grew 5.7 percent in December, down from 17.4 percent a year earlier.”

“Taiwan’s shipments to the mainland slumped 64 percent in January because of weaker demand for electronic components.”

“Philippine shipments to China fell 58 percent.

“India imposed a six-month ban on imports of Chinese toys last month, citing health concerns.”

Vishay posts loss, sees job cuts

According to Reuters: “Chipmaker Vishay Intertechnology Inc (VSH.N) posted a fourth-quarter loss, said it was evaluating additional plant closures and expects more job cuts, sending shares to their lowest in over 18 years.

The company, which has already reduced close to 9 percent of its workforce in the fourth quarter, said it had laid off 700 more employees in January.”

  • The company employs about 27,900 people across its operations in United States, Europe and Asia.

February 7, 2009

Intel to close unit in Shanghai, cut 2,000 local jobs

According to China Daily: “Intel Corp, the world’s leading semiconductor company, announced on Thursday it will shut a Shanghai Pudong plant as part of measures to streamline manufacturing operations in China.”

“The plant’s closure will affect about 2,000 employees, but they will have options, said Zhang. Intel has already promised to provide post transfers for the workers to the Chengdu plant, Intel’s still-under-construction Dalian plant or other Intel China divisions.”

February 4, 2009

Cisco Systems: possible large jobs cut in 2009

According to CNNMoney: “The global economic downturn will continue to hammer computer networking giant Cisco Systems Inc., chief executive John Chambers said Wednesday.

In its current quarter, Cisco expects to see revenue decline between 15% and 20%, he said in a conference call with analysts.”

“We are not going to consider (layoffs) at this time,” chief executive John Chambers said. But he added, that if Cisco was forced to cut jobs, it would likely be a large cut of about 10% of its workforce.

  • Cisco employed 67,318 workers worldwide at the end of the second quarter.

Top 20 Emerging Global Outsourcing Cities

Top 20 Emerging Global Outsourcing Cities in 2008:

1. Cebu, Philippines [Rank in 2007: 4]
2. Shanghai, China [Rank in 2007: 8]
3. Beijing, China [Rank in 2007: 10]
4. Ho Chi Minh City, Vietnam [Rank in 2007: 16]
5. Krakow, Poland [Rank in 2007: 16]
6. Kolkata, India [Rank in 2007: 5]
7. Cairo, Egypt [Rank in 2007: 11]
8. Sao Paulo, Brazil [Rank in 2007: 15]
9. Buenos Aires, Argentina [Rank in 2007: 14]
10. Shenzhen, China [Rank in 2007: 13]
11. Hanoi, Vietnam [Rank in 2007: 12]
12. Chandigarh, India [Rank in 2007: 9]
13. Curituba, Brazil [Rank in 2007: 17]
14. Prague, Czech Republic [Rank in 2007: 20]
15. Pasig City, Philippines [Rank in 2007: 23]
16. Dalian (Dairen), China [Rank in 2007: 18]
17. Coimbatore, India [Rank in 2007: 21]
18. Santiago, Chile [Rank in 2007: 19]
19. Colombo, Sri Lanka [Rank in 2007: 7]
20. Johannesburg, South Africa [Rank in 2007: 25]

Source: India Times

January 28, 2009

SAP cutting 3,000 jobs worlwide

Filed under: Asia,Germany,India,SAP,Technology,US,worldwide — DF @ 11:19 am
Tags: , ,

SAP AG said Wednesday it will cut a little more than 3,000 jobs in response to the worldwide economic downturn.

The Walldorf, Germany-based software giant said it will reduce its work force to 48,500 by the end of the year, down from 51,536 at the end of last year. The cuts will enable it to save 300 million to 350 million euros a year starting in 2010, SAP said.

Source: Philadelphia Business Journal

January 22, 2009

Leak: Texas Instruments to cut up to 30% of it’s workforce

According to leaks: “Things are really brewing here at Texas Instruments. We’re expecting a big layoff Jan 27 & 28. Internally we’re hearing as high as 30%  (including early retirement).” Also, according to rumors, Texas Instruments expects a second wave of layoffs at their Phillipines office.
EETimes also publishes rumors about layoffs at Texas Instruments.

1/26/2009 Update: TI cuts 3400 jobs: 1800 through layoffs and 1600 through voluntary retirements and departures. (Thanks, A)

News submitted by J

January 21, 2009

Intel to Cut up to 6,000 Jobs

According to The New York Times: “Intel said Wednesday that it would lay off at least 5,000 people at some of its older chip manufacturing and test operations, as it grapples with a steep decline in demand for personal and business computers.

The company, based in Santa Clara, Calif., announced the cuts on Wednesday, less than a week after it reported a 90 percent drop in fourth-quarter net income to $234 million and a sharp drop in revenue.”

“Intel will close two test plants in Malaysia and one in the Philippines. It will also halt production at two chip plants in Oregon and California. As a result, 5,000 to 6,000 people will lose their jobs.”

Intel Corp.’s chief executive, Paul Otellini, told employees recently that conditions are uncertain.

  • At the end of 2008, Intel (NASDAQ:INTC) had 84,000 employees
  • Advanced Micro Devices, Inc. (NYSE:AMD) also recently revealed plans to cut nearly 9 percent of its work force.

Update (1-21-2009): Intel will end wafer production operations at the D2 facility in Santa Clara. However, not all employees will leave Intel; some may be offered positions at other facilities, the company said. The actions will take place between now and the end of 2009, according to Business Weekly

January 9, 2009

Satyam’s Computer Services Chairman Arrested , Board Sacked, in Fraud Probe

According to Bloomberg: “Satyam Computer Services Ltd. chairman Ramalinga Raju and his brother Rama were arrested and the remaining directors of the software exporter sacked, as India started investigating an alleged $1 billion fraud.”

“Satyam, India’s fourth-largest software exporter, plunged for a second day in Mumbai trading on concern it may run out of money after Raju said he falsified the accounts “for several years.” The scandal, whose scope is being likened to the 2001 bankruptcy of Enron Corp., has shaken confidence in Indian companies and accounting standards.

“The Satyam case is an aberration,” Prem Chand Gupta, the Corporate Affairs Minister said. “The credibility of the Indian corporate sector in general, and IT sector in particular, should not be allowed to suffer because of this.”, according to BBC

Update (01-10-2009): “The chief financial officer of India’s Satyam Computer Services Ltd. was arrested Saturday, the third person taken into custody in a scandal that began when the company’s chairman admitted inflating profits with “fictitious” assets and non-existent cash.

Company founder B. Ramalinga Raju and his brother, Rama Raju, Satyam’s managing director, were arrested Friday in connection with the scandal. In a letter written to investigators, B. Ramalinga Raju admitted that he and his brother were responsible for cooking the books at Satyam”, according to CNN

Satyam founder B. Ramalinga Raju

Satyam founder B. Ramalinga Raju

Update 2 (01-10-2009): According to Naatmad: “Satyam Computer Services, [..] has said it will take fewer people on board to cut costs due to the unstable global economic environment. The company is planning to hire only 8,000-10,000 people this fiscal as against 15,000 that it had earlier planned to recruit. [..] Around 250 employees were given the pink slip last quarter.”

Update 3 (01-14-2009): According to BusinessStandard (India): Satyam may get full-time directors in a week

~ Please feel free to comment this info and/or send us your updates regarding scandal at Satyam. ~

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